Editorial: Let's have a Jerry-vs.-Perry throwdown over best state

2013-02-05 14:21:14

Texas Gov. Rick Perry reignited a hot debate this week when he told radio listeners that California businesses should "check out the low taxes, predictable regulations, fair legal system and skilled workforce" that he maintains makes his state not only better than California, but "the best state in the nation to live, work and raise a family."

That's quite a claim, and bashing the Golden State has become, in the words of a Sacramento Bee news story, "a traditional sport for Republican politicians."

Certainly, California in recent years has been targeted by chambers of commerce and governments beyond the state line in attempts to lure away businesses and residents. California Gov. Jerry Brown dismissively sniffed at Gov. Perry's latest effort, saying, "Everybody with half a brain is coming to California. So, Texas, come on over!"

Apart from the jousting, we find the exchange exciting. We say: Let the competition begin (although, in reality, the two states have been vying for businesses and workers for quite some time).

In a free market, such as advocated by the Register's Editorial Board, this is precisely how economic winners emerge, and how market corrections come about. We are all for it.

It may be an overgeneralization to characterize the choices as either the progressive vision of Mr. Brown and California's Democratic-controlled Legislature and the less-intrusive, less-tax-burdened governance of the predominantly Republican Lone Star State. But substantial differences do exist, as this page has noted for years.

The devil is in the details, of course. Different enterprises may find different aspects of one state more appealing. But that's the point. Let businesses and workers make those comparisons and choose the state that works better for them.

We are compelled to offer a caveat: Ideally we would like to see this competition unspoiled by taxpayer subsidies. In the current climate, unfortunately, politicians in both states seek to sweeten the pie with "incentives" and "inducements" underwritten from the public purse. As the Register consistently notes, inevitably, a subsidy for one is paid for by another, and tax breaks for a few cost many.

We believe those kinds of enhancements only confuse the matter. Subsidies don't last forever. And it is fundamentally wrong to use taxpayers' money to reward commercial ventures. So, let the competition begin! And, please, Mr. Brown and Mr. Perry, keep your hands off the public purse in the process.